Penn Traffic files for Chapter 11, plans to sell off stores
November 18, 2009
by Bakingbusiness Staff
SYRACUSE, N.Y. — The Penn Traffic Co., a supermarket operator in the northeastern United States under the P&C, Quality and BiLo names, filed for protection under Chapter 11 of the U.S. Bankruptcy Code Nov. 18. The company said it plans to sell off its stores and other assets.
"Our P&C, Quality and BiLo supermarkets remain open for business to serve our customers and communities," said Gregory Young, president and chief executive officer. "We intend to continue to work closely with our vendor partners to provide the fresh products and good value that our customers have come to expect from our stores."
Penn Traffic, which will continue to manage its properties and operate as "debtors-in-possession," said it plans to ask a bankruptcy judge on Thursday to approve a cash collateral arrangement to give it sufficient liquidity to maintain its operations while under bankruptcy protection.